An agreement on the costs of Gas Interconnection Poland-Lithuania costs reached

The transmission system operators of the Baltic States and Poland concluded the process of executing the cross-border cost allocation agreement on Gas Interconnection Poland-Lithuania (GIPL) project on 11 May 2018.

The agreement executed between GAZ-SYSTEM, Amber Grid (Lithuania), Conexus Baltic Grid (Latvia), and Elering (Estonia) sets out practices of the implementation of the European Agency for the Cooperation of Energy Regulators’ (ACER) decision on the GIPL project’s cross-border cost allocation.

The concluded agreement governs mutual obligations between gas transmission system operators (TSOs) arising from the implementation of the ACER’s decision. It specifies the method for calculating and adjusting the compensations payable by the Baltic TSOs to the Polish transmission system operator – GAZ-SYSTEM. It also concerns the issue of the possible reimbursement for some or all of these compensations if the GIPL project on the Polish side generates revenues higher than those specified in the ACER’s decision on the basis of economic analyses of the project.

The signing of the agreement on the GIPL project’s cross-border cost allocation paves the way for concluding an agreement governing the legal, business, and technical aspects of the project implementation, which is also a joint commitment of the parties to implement the investment (Final Investment Decision, FID) between GAZ-SYSTEM and Amber Grid.

The first public tenders for construction works and piping are planned this year.